China is known for so much that has changed and many see China as the land of opportunity. The latest adventure has been the use of Bitcoin. It’s rise and fall. One way to look at China is as much as there is new there are some things that don’t change. In China there are two fundamentals, Power and Money. And, Money and Power. To give you an idea of how power and money are different in China read this Economist article on how much richer the politicians are in China vs. the USA.
Power and money
Wealthy politicians
Sep 28th 2013 | From the print edition
Many Americans grumble about the wealth of their politicians, but they are paupers compared with their Chinese counterparts. The 50 richest members of America's Congress are worth $1.6 billion in all. In China, the wealthiest 50 delegates to the National People's Congress, the rubber-stamp parliament, control $94.7 billion. Darrell Issa, a Republican from California, is the richest man in Congress, with $355m. China's richest delegate is Zong Qinghou, boss of Hangzhou Wahaha Group, a drinks-maker, whose wealth is almost $19 billion (including assets distributed to family). Last year Mr Zong was China's richest man, but was overtaken by Wang Jianlin, who is not a member of the NPC. Wealth can bring problems wherever you are. On September 20th, a man, angry at being refused a job, attacked Mr Zong with a knife near his home in Hangzhou. Mr Zong survived, with nasty cuts to his hand.
On 11/24/2013 Forbes discusses how Bitcoin, Baidu, and Beijing are a triangle.
A China Triangle: Bitcoin, Baidu And Beijing
Comment NowFollow CommentsThinking of buying trinkets in Beijing? Don’t forget to bring your Bitcoins. China, in the last few weeks, has gone crazy over the cryptocurrency, which is now accepted by Chinese online retailers, a Shanghai real estate developer,and traders in Tiananmen Square. Perhaps you want a latte in Zhongguancun? Yes, you can use Bitcoins to pay for caffeine in Beijing’s high-tech zone.
And less than two weeks later Baidu and Beijing shut down the use of Bitcoin.
China Slams Bitcoins: What's Next?
Chinese central bank prohibits the country's financial institutions from touching bitcoins, but plans regulation. Cue further trouble for the crypto-currency?
The value of bitcoins dropped 30% Thursday after the People's Bank of China and five other Chinese government ministries banned the country's financial institutions from handling the currency.
Why the sudden change? Because Bitcoin changes the Money system in China which effects Power. Those in power don’t like to see the money system changed in a way that could affect their power.